US life insurers showed continued focus on bulking up distribution capabilities and diversity in the face of strong demand, while at the same time increasing social media and mobile technology capabilities to connect with consumers and differentiate their offerings in 2013 and early 2014, according to a new study by Conning.
“In 2014, insurance distribution continues to evolve in response to advisor recruitment and distribution firm consolidation,” said Scott Hawkins, analyst at Conning. “Firms and insurers continue to increase the number of advisors, with a focus on seasoned producers, as they rebuild field forces to near pre-recession levels. Field recruiting has been focused on responding to population growth in key market segments, and on the need to reflect the increasing diversity of the American consumer.”
The Conning study, “Individual Life and Annuity Distribution and Marketing Annual” examines key issues affecting distribution channels and highlights current marketing and advertising best practices in the life insurance and annuity industry. A detailed advertising expense analysis and details of sales by channel are included.
“Insurers continue to focus on mobile and social media strategy development, with messaging focuses on financial literacy and solutions to specific financial needs,” said Steven Webersen, director of research at Conning.
“This educational support and planning knowledge are key components of insurer social media strategies. While larger insurers have more sophisticated programmes, we see mobile and social media activities now at all levels of the industry. That said, our analysis of advertising expense ratios indicates that insurers are not increasing overall advertising budgets so much as adjusting marketing focus to fit mobile and social strategies into their overall spend.”
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